S&T BANK LAUNCHES BRANCH REFRESH INITIATIVE TO CREATE A MORE MODERN, PEOPLE-FORWARD BANKING EXPERIENCE [Accessibility Statement] Skip NavigationINDIANA, Pa., Feb. 12, 2026 /PRNewswire/ -- S&T Bank, the wholly owned subsidiary of S&T Bancorp, Inc. (NASDAQ, STBA), announces the launch of a branch refresh initiative designed to reimagine its physical locations with brighter, more open spaces and a modern feel that better supports relationship-driven, people-forward banking. The first refreshed branch will be t ...

Core Insights - S&T Bank has been recognized as one of America's Best Banks by Forbes for the third consecutive year, highlighting its consistent performance among large publicly-traded banks and thrifts [1] - The recognition reflects the bank's strategic discipline and the commitment of its employees to serve customers and support communities [1] - S&T Bank ranks 36th on Forbes' list, making it the highest-ranked bank headquartered in Pennsylvania [1] Company Overview - S&T Bancorp, Inc. is a bank holding company with total assets of $9.9 billion, headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [1] - The principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio [1]

Company Overview - S&T Bancorp (STBA) is based in Indiana and operates in the Finance sector, with a year-to-date share price change of 12.15% [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 3.26%, which is higher than the Banks - Northeast industry's yield of 2.41% and the S&P 500's yield of 1.34% [3] Dividend Performance - The current annualized dividend of S&T Bancorp is $1.44, reflecting a 4.3% increase from the previous year [4] - Over the past five years, S&T Bancorp has increased its dividend four times year-over-year, achieving an average annual increase of 5.08% [4] - The company's current payout ratio is 41%, indicating that it pays out 41% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, S&T Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $3.66 per share, representing a year-over-year growth rate of 4.87% [5] Investment Considerations - S&T Bancorp is viewed as a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 2 (Buy) [6] - The company is positioned well compared to high-growth firms or tech start-ups, which typically do not provide dividends, making it an appealing option for income investors [6]

Investors might want to bet on S&T Bancorp (STBA) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a cha ...

Core Insights - S&T Bank is expanding its presence in the Pittsburgh area by opening a new full-service branch and an expanded office location at One North Shore Center, reinforcing its commitment to serving customers and communities in the region [1][4] Branch and Office Details - The new location at One North Shore Center will include a full suite of banking services and expanded office space, replacing the previous location at 358 North Shore Drive, which lacked a branch and had limited office space [2] - The new office will span approximately 28,000 square feet and feature upgraded meeting areas, modern training spaces, and technology-enabled conference rooms, designed to enhance customer and employee engagement [4] Partnership and Development - S&T Bank is partnering with Elmhurst, a Pittsburgh-based real estate firm, to renovate One North Shore into a Class A office property, which will include modern amenities such as a shared tenant lounge and conference/training rooms [3][5] - The partnership aims to create a welcoming environment that supports both the bank's operations and the local community, contributing to the economic development of the area through job creation and personalized financial solutions [5] Company Background - S&T Bancorp, Inc. is a $9.9 billion bank holding company headquartered in Indiana, Pennsylvania, and operates primarily in Pennsylvania and Ohio [7] - The bank was established in 1902 and trades on the NASDAQ Global Select Market under the symbol STBA [7]

Core Insights - The company reported a net income of $34 million, equating to 89¢ per share, with a return on assets (ROA) of 1.37% and a net interest margin (NIM) of 3.99%, marking the best performance since 2023 [2][4] - Loan growth was just under 4.5% for the quarter, primarily driven by commercial banking, while customer deposit growth was at 2.9% [1][3] - The company announced a new $100 million share repurchase authorization, reflecting strong capital levels and the ability to pursue growth opportunities [1][5] Financial Performance - The company achieved a net income of $135 million for the year, with earnings per share of $3.49 and a net interest margin of 3.9% [4] - Noninterest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 to $14 million per quarter [12][13] - Expenses were controlled, with a year-over-year increase of approximately 3%, leading to a projected quarterly run rate of about $58 million [13][36] Loan and Deposit Growth - Loan growth was primarily driven by commercial and industrial (C&I) loans, with C&I balances increasing by $53 million and commercial real estate (CRE) balances by $34 million [6][7] - Customer deposit growth was strong, particularly in the consumer space, with a focus on driving core deposit growth to fund loan growth [27][28] - The company anticipates mid-single-digit loan growth for 2026, supported by improved activity in C&I and CRE [7][11] Asset Quality - Asset quality was mixed, with net charge-offs at 18 basis points for the year and a reduction in criticized and classified loans by 50% over three years [3][10] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting successful problem loan resolutions [8][9] - The company expects asset quality in 2026 to perform similarly to 2025, with a focus on reducing non-performing loans (NPLs) [11][35] Capital Management - The tangible common equity (TCE) ratio decreased by 29 basis points due to share repurchases, but regulatory ratios remain strong with significant excess capital [13][14] - The company repurchased over 948,000 shares at an average price of $33.82, totaling $36.2 million [14] - The share repurchase program does not impede the company's ability to pursue mergers and acquisitions (M&A) opportunities [5][23] Market and Competitive Landscape - The company is focused on adding talent in the C&I and CRE sectors to enhance customer acquisition and support growth [19][52] - Competitive pressures on deposit rates have moderated, allowing for a more rational market environment [54][55] - The company is optimistic about its ability to grow deposits at a rate that matches projected loan growth [56]

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Financial Data and Key Metrics Changes - For the full year 2025, the company produced $3.49 per share, with net income just under $135 million and a net interest margin (NIM) of 3.9% [4] - In Q4, net income was $34 million, equating to $0.89 per share, slightly down from Q3, with a return on assets (ROA) of 1.37% [5] - The NIM rose to 3.99%, up six basis points from the previous quarter, marking the best performance since Q2 2023 [6] - Non-interest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 million to $14 million per quarter [13] Business Line Data and Key Metrics Changes - Loan growth for Q4 was just under $100 million at 4.5%, primarily driven by commercial banking, with C&I and CRE portfolios growing by $53 million and $34 million, respectively [8] - Customer deposit growth was just under $60 million at 2.9%, with a strong deposit mix where demand deposits accounted for 27% of total balances [6] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting a reduction in criticized and classified loans by $30 million, or 13% [10] Market Data and Key Metrics Changes - The company anticipates mid-single digit loan growth for 2026, primarily from C&I and CRE, supported by increased activity from investments in team leadership and banker talent [9] - The company experienced a strong Q4 in customer deposit growth, particularly in the consumer space, despite some anomalous activity with large commercial depositors [36] Company Strategy and Development Direction - The company announced a new $100 million share repurchase authorization, indicating robust capital levels and the ability to consider M&A opportunities [7] - The focus remains on maintaining asset quality while pursuing growth in commercial banking and consumer home equity [9] - The company is committed to adding talent in C&I and CRE to accelerate growth, with a strong emphasis on deposit gathering and developing new relationships [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining asset quality in 2026, with expectations that results will not perform worse than in 2025 [52] - The overall state of the economy is improving, but management is cautious about predicting growth rates significantly higher than GDP [20] - The company is optimistic about its ability to respond to competitive pressures in the deposit market, aiming to grow deposits at a rate that matches loan growth [89] Other Important Information - The TCE ratio decreased by 29 basis points due to share repurchases, but regulatory ratios remain strong with significant excess capital [14] - The company is utilizing AI tools for BSA, AML compliance, and fraud protection, which have resulted in significant savings [67][69] Q&A Session Summary Question: What is holding back loan growth from ramping to mid to high single-digit pace? - Management indicated that it is not a demand issue but ensuring asset quality of new customers meets criteria to maintain lower levels of criticized and classified loans [19] Question: How focused is hiring on the C&I side? - Hiring is a top priority across C&I and CRE, with efforts to enhance deposit gathering and customer relationships [22] Question: What is the outlook on deposit growth and funding loan growth? - The company expects to fund loan growth internally through deposit growth, with a strong focus on core deposit growth [36] Question: Can you provide an update on M&A discussions? - Management confirmed active dialogue across geographies, with a focus on executing current strategies while exploring M&A opportunities [27] Question: What are the competitive factors on the deposit side? - Early Q4 saw pressure from competitors to retain deposits, but the market became more rational in the second half of the quarter [88]

Financial Data and Key Metrics Changes - For the full year 2025, the company produced $3.49 per share and net income of just under $135 million, with a net interest margin (NIM) of 3.9% [4] - In Q4, net income was $34 million, equating to $0.89 per share, slightly down from Q3, with a return on assets (ROA) of 1.37% [5] - The NIM rose to 3.99%, up six basis points from the previous quarter, marking the best performance since Q2 2023 [6] - Non-interest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 million to $14 million per quarter [13] Business Line Data and Key Metrics Changes - Loan growth for Q4 was just under $100 million at 4.5%, primarily driven by commercial banking, with C&I and CRE portfolios growing by $53 million and $34 million, respectively [8] - Customer deposit growth was just under $60 million at 2.9%, with demand deposit accounts (DDAs) representing 27% of total balances [6] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting a reduction in criticized and classified loans by $30 million, or 13% [10] Market Data and Key Metrics Changes - The company anticipates mid-single digit loan growth for 2026, primarily from C&I and CRE, supported by investments in team leadership and banker talent [9] - The competitive landscape for deposits has become more rational, with the company able to attract and retain deposits effectively [88] Company Strategy and Development Direction - The company announced a new $100 million share repurchase authorization, indicating strong capital levels and the ability to consider M&A opportunities [7] - The focus remains on maintaining asset quality while pursuing growth in commercial banking and consumer home equity [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining asset quality similar to 2025 levels, with a focus on reducing non-performing loans (NPLs) [11] - The overall economic state is improving, but management is cautious about predicting growth rates significantly higher than GDP [20] Other Important Information - The TCE ratio decreased by 29 basis points due to share repurchases, with regulatory ratios remaining strong [14] - The company is leveraging AI tools for compliance and fraud detection, which has resulted in significant savings [67][69] Q&A Session Summary Question: Loan growth expectations and constraints - Management indicated that loan growth is not constrained by demand but by ensuring asset quality of new customers [18][19] Question: Margin trends and competitive pressures - Management noted that competitive intensity around rates has decreased, allowing for better margin stability [23][25] Question: M&A activity and geographic focus - Management confirmed ongoing active dialogue regarding M&A opportunities without a significant shift in geographic preference [27] Question: Deposit growth and funding loan growth - Management expects to fund loan growth internally through deposit growth, with a strong focus on core deposit growth [36][37] Question: Asset quality and charge-offs - Management confirmed that charge-offs were related to previously identified credits, with a focus on reducing criticized and classified loans [50][51]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a net income of just under $135 million, equating to $3.49 per share, with a net interest margin (NIM) of 3.9% [4] - In Q4, net income was $34 million, or $0.89 per share, slightly down from Q3, with a return on assets (ROA) of 1.37% [5] - The NIM rose to 3.99%, up six basis points from the previous quarter, marking the best performance since Q2 2023 [6] - Non-interest income increased by $500,000 in Q4, with expectations for fees in 2026 to remain around $13 million to $14 million per quarter [14] Business Line Data and Key Metrics Changes - Loan growth for Q4 was just under $100 million at 4.5%, primarily driven by commercial banking, with C&I and CRE portfolios growing by $53 million and $34 million, respectively [6][8] - Customer deposit growth was just under $60 million at 2.9%, with a strong deposit mix where demand deposits (DDAs) represented 27% of total balances [6] - The allowance for credit losses (ACL) decreased from 1.23% to 1.15% quarter over quarter, reflecting a reduction in criticized and classified loans by $30 million, or 13% in Q4 [11] Market Data and Key Metrics Changes - The company anticipates mid-single digit loan growth for 2026, primarily from C&I and CRE, supported by investments in team leadership and banker talent [10] - The competitive landscape for deposits has become more rational, with the company focusing on core deposit growth to fund loan growth [66] Company Strategy and Development Direction - The company announced a new $100 million share repurchase authorization, indicating strong capital levels and the ability to consider M&A opportunities [7] - The focus remains on maintaining asset quality while pursuing growth in commercial banking and consumer home equity [10][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining asset quality similar to 2025 levels, with a focus on reducing non-performing loans (NPLs) [12][43] - The overall economic environment is improving, but management is cautious about predicting growth rates significantly higher than GDP growth [19] Other Important Information - The company has been actively hiring to support growth in C&I and CRE, with a focus on adding talent across various segments [20][32] - AI tools are being utilized for compliance and fraud detection, with ongoing efforts to enhance operational efficiency [54][56] Q&A Session Summary Question: Loan growth expectations and constraints - Management indicated that loan growth is not constrained by demand but by ensuring asset quality of new customers [18] Question: Margin outlook and competitive pressures - Management noted that competitive pressures on deposit rates have eased, allowing for better margin stability [21][66] Question: M&A activity and geographic focus - Management confirmed ongoing active dialogue regarding M&A opportunities without a significant shift in geographic preference [25] Question: Asset quality and charge-offs - Management clarified that recent charge-offs were related to previously identified credits, emphasizing the reduction in criticized and classified loans [40][43] Question: Deposit growth and funding loan growth - Management expects to fund loan growth internally through deposit growth, focusing on core deposit strategies [30][32]